September 04, Colombo (LNW): The Sri Lanka Gem and Jewellery Association (SLGJA), the leading body for the country’s gem and jewellery sector, has urged the government to take decisive actions to elevate the industry to new heights.
Established in 2002, the SLGJA aims to position Sri Lanka as the “Sapphire Capital” of the world, where 80% of globally mined sapphires are processed locally, and more than half of the world’s sapphire jewellery is manufactured in the country.
In its recent appeal, the SLGJA highlighted the potential for the gem and jewellery sector to become a multi-billion-dollar industry, driving inclusive economic growth and sustainability in Sri Lanka.
To achieve this, the association emphasized the need to improve the ease of doing business to attract raw materials, investments, and international branding opportunities.
The SLGJA outlined four strategic priorities: supply development, manufacturing development, market development, and investment promotion.
A key aspect of this strategy is ensuring the free flow of raw materials at competitive costs, enabling the growth of a vibrant, value-added industry. Sri Lanka’s rich history as a top producer of high-quality sapphires provides a strong foundation for this vision.
The SLGJA also recommended conducting a gem deposit survey using digital geoscience technologies to identify and systematically mine accessible gem deposits.
To streamline the industry, the association proposed digitizing the gem mining license application process and implementing a one-stop-shop concept for approvals, reducing delays and minimizing corruption.
Additionally, the SLGJA called for the development of sustainable mining standards to ensure safety, environmental protection, and land restoration for agriculture after mining activities.
The SLGJA advocated for several tax reforms to support the industry, including duty-free importation of worked and unworked gemstones, precious metals, and machinery essential for gem and jewellery production.
It also emphasized the importance of establishing a robust traceability system to prevent the diversion of imported materials into grey markets.
To enhance Sri Lanka’s reputation in gem cutting and jewellery manufacturing, the SLGJA suggested establishing a world-class training school and encouraging the adoption of advanced technologies like 3D printing and artificial intelligence. Collaborations with universities and the establishment of international gem testing laboratories in Sri Lanka were also recommended.
In terms of market development, the SLGJA highlighted the importance of negotiating tax-free access to China and India, two emerging markets, and establishing a VAT refund mechanism for non-residents. The registration of a Geographical Indication for Ceylon Sapphire with the World Trade Organization (WTO) was also suggested to secure premium value for Sri Lankan gemstones.
Finally, the SLGJA called for an international marketing campaign to enhance the brand image of Ceylon Sapphire and increase global demand by developing an “Ethical Sri Lanka Sapphire Standard” to boost consumer confidence and appeal. These strategic reforms are seen as crucial steps towards unlocking the full potential of Sri Lanka’s gem and jewellery industry
